This
matter came before the Utah State Tax Commission for a Settlement Conference
pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX.G. Blaine Davis, Administrative Law Judge,
heard the matter for and on behalf of the Commission.Present and representing Petitioner was Mr. XXXXX, the CPA for
the Petitioner.Present and
representing Respondent was XXXXX, of the Collections Division.

The
issue in this case is the withholding tax for the first quarter of XXXXX, which
was not filed until XXXXX, after having received notice that the return had not
been filed and that payment had not been made thereon.The Petitioner represents that the problem
occurred because Petitioner was reorganizing its business and was unfamiliar
with the filing requirements, and that it was going through an organizational
change to a corporation.However, the
articles of incorporation were not filed until XXXXX, approximately eight
months after the delinquency in question.

The
return for the fourth quarter of XXXXX was also delinquent, which would have
been about the time of the business reorganization, but the penalty for that
quarter is not at issue in this appeal.

The
Petitioner also challenges the imposition of the second $$$$$ penalty for
failure to pay, because he says section 59-1-41(2) only imposes the penalty for
failure to pay if:

"For
failure to pay any tax as reported on the return filed or within thirty (30) days
of a notice of deficiency of tax required to be shown on a return, the penalty
is the greater of fifty dollars or ten percent of the tax due."

The
Petitioner says that the tax was paid within thirty days from the date he
received a notice, and therefore the failure to pay penalty should not be
imposed.However, the Petitioner
received a notice of failure to file on XXXXX, which was due on XXXXX.Notices of deficiency are issued in audit
cases and are not required to be issued in failure to file cases.

DECISION AND ORDER

Based
upon the information presented at the conference, and the records of the Tax
Commission, the Commission finds sufficient cause has not been shown to waive
the penalties and interest assessed for the first quarter of XXXXX.

This
decision does not limit a party's right to a formal hearing.However, this Decision and Order will become
the Final Decision and Order of the Commission unless any party to this case
files a written request within thirty (30) days of the date of this decision to
proceed to a Formal Hearing.Such a
request shall be mailed to the address listed below and must include the
Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, Utah84134

Failure
to request a Formal Hearing will preclude any further administrative action or
appeal rights in this matter.